KATHMANDU: Economic Digest presents a brief yet comprehensive roundup of major business developments in Nepal, delivered in clear and accessible summaries.
Nepal’s economy is facing simultaneous pressures from financial-market weakness, weather-related disruptions, and rising business costs, although some sectors show signs of resilience. The NEPSE index fell 16.47 points to 2,613.33, with 224 companies declining, indicating broad-based investor weakness despite Rs 5.38 billion in turnover. Gold and silver prices also dropped, reflecting softer domestic precious-metal prices. Meanwhile, Nepal Rastra Bank’s Rs 30 billion deposit collection auction signals continued efforts to absorb excess liquidity from the banking system.
Severe monsoon weather remains the most significant immediate economic disruption. Floods and landslides affected hydropower projects with 1,292 MW of capacity and caused estimated infrastructure damage of Rs 74 billion. Transport blockages also stranded LPG supplies and pushed Kathmandu vegetable prices up by as much as 72 percent, highlighting the vulnerability of supply chains. Business groups are consequently pressing for lower electricity costs, better infrastructure, and protection against rising trade barriers.
At the same time, economic activity is gradually recovering. Mechi Customs collected Rs 2.83 billion, while improved weather allowed Kaligandaki A hydropower generation, Suketar flights, and Pokhara balloon tourism to resume. Banks also reported dividend distributions and growth. Overall, the developments point to an economy balancing liquidity management and recovery against substantial infrastructure, logistics, and cost pressures.
NEPSE falls by 16 points with Rs 5.38 billion turnover
The Nepal Stock Exchange (NEPSE) index dropped 16.47 points on the first trading day of the week, closing at 2,613.33 points. According to NEPSE, total turnover reached Rs 5.38 billion, with 13.1 million shares changing hands. Share prices of 49 companies rose, while 224 companies recorded declines and six remained unchanged. Individual stocks fluctuated by as much as 12.17 percent on the upside and 10.58 percent on the downside. Himalayan Distillery recorded the highest transaction volume, with shares worth Rs 350 million traded, followed by Shivam Cements with a turnover of Rs 290 million. Except for the trading sector, all other sectoral indices ended the session lower.
Gold traded at Rs 294,300 and silver at Rs 4,510
Gold prices fell sharply in the domestic market on Monday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of gold declined by Rs 5,000 per tola (11.66 grams), falling from Rs 299,300 per tola on Sunday to Rs 294,300 on Monday. Silver prices also decreased by Rs 145 per tola. Silver, which was priced at Rs 4,655 per tola on Sunday, fell to Rs 4,510 on Monday.
NRB floats Rs 30 billion one-month deposit collection
Nepal Rastra Bank (NRB) invited commercial banks and financial institutions to submit bids for a 30-day deposit collection auction worth Rs 30 billion as part of its efforts to manage excess liquidity in the domestic banking system. Eligible Class A, B, and C financial institutions used the central bank’s online bidding system to submit competitive interest rate bids. Settlement and maturity are scheduled for October 13. The monetary operation is designed to absorb surplus liquidity through competitive yield-based allocations, while allowing participating institutions to count the deposits toward their statutory liquidity ratio requirements.
Finance Minister meets AIIB president to discuss post-disaster reconstruction and concessional financing
Finance Minister Swarnim Wagle met Asian Infrastructure Investment Bank (AIIB) President Zou Jiayi during the 11th annual meeting of the bank’s Board of Governors in Doha. Wagle sought increased investment, assistance for post-disaster reconstruction in areas affected by the Bhote Koshi River floods, and greater access to concessional financing for green energy, road infrastructure, and digital development. Zou expressed condolences over the disaster and pledged grant support through the Project Preparation Specialized Fund to help maintain low-cost financing. She also assured Nepal of maximum assistance for resilient reconstruction. Wagle invited Zou to visit Nepal by 2026. Meanwhile, adverse weather conditions have led to the closure of all border points between India and China.
Monsoon floods affect 1,292 megawatts of hydropower capacity nationwide
Four days of continuous heavy rainfall triggered severe floods and landslides that damaged power infrastructure and disrupted electricity generation at hydropower projects with a combined capacity of 1,292 megawatts, according to Nepal Electricity Authority Managing Director Dirghayu Kumar Shrestha. Authorities said generation units totaling 262 megawatts along the Seti-Madi corridor and 190 megawatts along the Marsyangdi corridor have resumed operations. Preparations are also underway to restart the 144-megawatt Kaligandaki A project. However, disruptions along the Kusma-Dana transmission line continue to affect seven projects with a combined capacity of 190 megawatts. Preliminary estimates put infrastructure damage to state-owned and subsidiary operations at around Rs 74 billion.
Kaligandaki A hydropower station resumes generation after floodwaters recede
The 144-megawatt Kaligandaki A hydropower project in Beltari, Kaligandaki-5, resumed commercial electricity generation on Monday, September 28, after floodwaters receded following four days of continuous heavy rainfall. The station chief said technical teams had completed safety inspections of the powerhouse and diversion tunnels, clearing the facility to restart its generating units. The project had been completely shut down after high river flows threatened its electromechanical equipment. Meanwhile, district administration teams coordinated emergency relief efforts and temporary shelter arrangements for 26 families displaced from flood-affected riverside settlements in Setibeni across Syangja, Parbat, and Gulmi.
Mechi Customs collects Rs 2.83 billion in revenue
The Mechi Customs Office in Kakarbhitta collected Rs 2.83 billion in revenue during the first two months of the current fiscal year. The collection represents 92.14 percent of the Rs 3.07 billion target set for the period from July 17 to September 16. Between July 17 and August 16, the office collected Rs 1.27 billion against a target of Rs 1.43 billion. From August 17 to September 16, revenue collection reached Rs 1.55 billion against a target of Rs 1.64 billion. Collection performance improved from 89.19 percent in the first period to 94.73 percent in the second. Chief Customs Officer Shiva Lal Neupane said revenue collected from August 17 to September 16 was 9.43 percent higher than during the corresponding period of the previous fiscal year, when the office collected Rs 1.36 billion. He attributed the increase to a gradual recovery in cross-border trade and stricter customs administration.
Sayapatri Hydropower transmission lines disrupted by severe flooding
Power generation and transmission at the 2.5-megawatt Sayapatri Hydropower Limited project in Tarakhola Rural Municipality, Baglung, were completely halted after flash floods damaged 33-kilovolt transmission poles and cables linking the project’s switchyard with Nepal Electricity Authority substations. Company officials said communication links were also disrupted following the incident on Friday, September 25, preventing field personnel at the remote site from sending a comprehensive assessment of the damage. Technical teams have begun preliminary inspections and assessments, with efforts underway to restore the damaged infrastructure and resume electricity generation and transmission once weather and access conditions improve.
FNCCI urges government to revoke VAT on electricity to reduce production costs
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the Government of Nepal to withdraw the value-added tax (VAT) imposed on electricity consumption from the current fiscal year 2026/27, arguing that the additional tax burden is increasing production, operating, and business costs. Business representatives said that although input tax credit provisions are available, compliance requirements and delays in VAT refunds are placing additional pressure on the working capital of energy-intensive manufacturers, small and medium-sized enterprises, and tourism businesses. The umbrella organization representing the private sector argued that electricity should be treated as a basic infrastructure input rather than primarily as a source of government revenue. It said such an approach would help protect domestic industries, encourage private investment, and limit inflationary pressure on consumer prices.
Morang Industries Association urges government to reduce production costs
The Morang Chamber of Commerce and Industry has urged Minister for Industry, Commerce, and Supplies Deepak Kumar Sah to introduce targeted policy measures to reduce manufacturing costs and improve the export competitiveness of businesses operating in the Sunsari-Morang industrial corridor. During high-level consultations led by association president Nandkishore Rathi, business representatives called for the removal of value-added tax (VAT) on electricity used by industries, improvements to infrastructure to address persistent low-voltage and power-tripping problems during the dry season, and stronger diplomatic efforts to counter proposed increases in anti-dumping tariffs on Nepali jute products by neighboring trading partners.
Infrastructure Development Committee directs authorities to ensure safe public transport during festivals
The House of Representatives Infrastructure Development Committee has directed relevant agencies to ensure safe, orderly, and dignified public transportation during the Dashain, Tihar, and Chhath festivals. At a meeting on Monday, September 28, committee chairperson Ashish Gajurel instructed authorities to arrange sufficient vehicles, operate services from designated bus parks, and establish passenger help desks. The committee also called for vehicle inspections, adequate rest for drivers, strict enforcement of fares, and effective grievance-handling mechanisms to prevent passengers from being overcharged. Member of Parliament Raju Nath Pandey was also selected to serve on a subcommittee tasked with overseeing transportation management during the festive period. Meanwhile, adverse weather conditions have resulted in the closure of all border points between India and China.
Continuous rainfall strands 105 cooking gas bullets en route to the capital
Continuous rainfall has stranded 105 cooking gas bullets bound for the Kathmandu Valley since Wednesday, September 23, 2026, after road blockages disrupted transportation. Nepal Oil Corporation (NOC) spokesperson Manoj Kumar Thakur said the stranded shipment contains enough LPG to fill approximately 150,000 cylinders and is currently being kept at safe locations, including Ramnagar in Chitwan and Hetauda, under the coordination of the respective district administrations. Transportation will resume after landslides at Krishna Bhir and other locations in Dhading are cleared. According to Department of Customs data, Nepal imported 117,168 metric tonnes of LPG during the first two months of fiscal year 2025/26, worth Rs 16.26 billion. Meanwhile, all border points between India and China remain closed because of adverse weather conditions.
Transport entrepreneurs urge government to keep fuel prices unchanged during festivals
Transport entrepreneurs have asked the government to refrain from raising petroleum prices during the upcoming festive season, saying they are prepared to maintain existing public transport fares in return. The president of the Federation of Nepalese National Transport Entrepreneurs (FNNTE) made the request during a meeting of the House of Representatives Infrastructure Development Committee on Monday. Transport operators said they were willing to provide services at current fares despite potential losses but warned that any increase in fuel prices would make continued operations difficult. The FNNTE said transport operators were prepared to carry passengers from Mechi to Mahakali at existing fares, but an increase in petroleum prices could make it impossible to operate vehicles at those rates.
Regular flights resume at Suketar Airport after 3.5 months
Nepal Airlines resumed regular flights to Suketar Airport on Monday, September 28, after a 3.5-month suspension caused by adverse weather and technical difficulties. Air traffic controller Dilip Rajbanshi said a Twin Otter carrying 13 passengers from Kathmandu landed safely at the airport before returning to the capital with five passengers. Under a revised schedule effective October 1, regular flights will operate on Mondays, Thursdays, and Saturdays. The approved fare is Rs 12,270 for flights from Kathmandu to Taplejung and Rs 12,070 for the return journey. The services are expected to support pilgrims and trekkers traveling to Pathibhara and the Kanchenjunga region.
Pokhara hot air balloon adventures resume after monsoon break
Adventure tourism operators in Pokhara resumed commercial hot air balloon flights in the Pame area on September 5 after a three-month seasonal suspension caused by the monsoon. Company chairman Bikram Bade said improving weather conditions have allowed domestic and international visitors to enjoy panoramic aerial views of Phewa Lake, Pumdikot Mahadev, Sarangkot, and the Himalayan ranges, including Machhapuchhre and Annapurna, from altitudes of up to 6,000 feet. The service is priced at Rs 11,000 for domestic visitors, USD 120 for SAARC and Chinese nationals, and USD 150 for other foreign tourists. Packages include breakfast and a digital flight certificate.
Vegetable prices surge by up to 72% in Kathmandu due to highway blockages
Wholesale vegetable prices in Kathmandu have risen by as much as 72 percent following major supply disruptions caused by continuous rainfall, floods, and landslides that blocked key highways over the past four days. Statistics from the Kalimati Fruit and Vegetable Market Development Board showed that market arrivals fell by more than 50 percent between September 24 and 25. As a result, the wholesale price of green soybeans increased by 72.72 percent, from Rs 110 to Rs 190 per kilogram. Small local tomatoes rose by 71.59 percent, from Rs 37 to Rs 65 per kilogram. Prices of green onions, mustard greens, cabbages, and several other vegetables also increased. Market observers said distribution is expected to return to normal once emergency road-clearance efforts restore transportation links with major agricultural production areas.
Miteri Development Bank declares 11% total dividend for shareholders
The board of directors of Miteri Development Bank Limited approved a proposal on September 25 to distribute a total dividend of 11 percent to shareholders from the bank’s earnings for the previous fiscal year. The proposed distribution consists of a 5 percent bonus share dividend and a 6 percent cash dividend, including applicable taxes. The proposal remains subject to approval from Nepal Rastra Bank and subsequent endorsement at the bank’s upcoming annual general meeting.
Sanima Bank approves 18.25% cash dividend at 22nd annual general meeting
Sanima Bank held its 22nd annual general meeting on Monday, September 28, under the chairmanship of board chair Tuk Prasad Paudel and approved its proposed financial distributions for fiscal year 2025/26. Shareholders approved a 10 percent cash dividend on ordinary shares and an 8.25 percent cash dividend on preference shares. The meeting also elected Tej Bahadur Chand and Mahesh Ghimire as directors representing ordinary shareholders without opposition. According to the financial statements presented at the meeting, the bank recorded a net profit of Rs 3.55 billion. Total assets, customer deposits, and net loans also increased by more than 10 percent compared with the previous fiscal year.
Government mandates strict implementation of Slaughterhouse and Meat Inspection Act
Agriculture, Forests, and Environment Minister Gita Chaudhary announced that the government will begin mandatory nationwide enforcement of the Slaughterhouse and Meat Inspection Act, 1999, starting with the Kathmandu Valley on November 17 to ensure safe and hygienic meat consumption. Speaking to municipal representatives at a strategic planning conference, Chaudhary said that although the law was enacted 28 years ago, inadequate coordination and enforcement have left consumers exposed to unhygienic meat supply practices. The government plans to expand enforcement to all municipal centers by January 15, 2027, before implementing the law nationwide from July 17, 2027.
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